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Financial savings of India declined considerably:RBI

25 Aug 2012 Evaluate
Amid ailing economic health and inflation, the Reserve Bank of India’s annual report has revealed that the net financial savings of the country is badly affected.  Net financial savings is constituted of three sources like household savings, government savings and corporate profits.

Inflation has resulted in sharp decline in small savings and lower growth in typical Indian households’ holdings of deposits, currency and life insurance funds, which in turn has affected country’s savings. Slowing economy has also tightened corporate profits and also affected government’s fiscal condition with less room to save further.

RBI ‘s report reveals that the change in consumer behavior and  more investment flow to assets like gold which give high returns is also a major concern for low bank deposit growth. The central bank also noted that in the past 11 years, gold has given compounded annual return of 18.5%, emphasizing the worrying trend.

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MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

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